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Fubon Third Quarter 2009 Overview
2009.11.02
1
Disclaimer
This meeting may contain forward-looking statements with respect to the financial
condition, results of operations and business of the company. These forward-looking
statements represent the company’s expectations or beliefs concerning future events
and involve known and unknown risks and uncertainty that could cause actual
results, performance or events to differ materially from those expressed. Certain
statements, such as those that include the words “potential”, “estimated”, and similar
expressions or variations on such expressions may be considered “forward-looking
statements”.
2
Agenda
Performance highlights of the group
Performance review of banking business
Performance review of insurance business
Update on CDO exposure
3
Financial highlight
Net profits of NT$14,710m for the first nine months of 2009 represents 45% yoy
Opportunities arising
Key earning drivers
year to September
• Contribution from investment and dividend income
• Recurring business show sequential improvement
• Loan growth
• Wealth management
• Insurance premium
• Credit cycle remain benign
• Recovery of mark-to-market asset value
• Stabilization of net interest margin in Taipei Fubon Bank
• Management of investment spread in Fubon Life
• Growth opportunities in greater China
4
10,170
4,642
1,6841,433
1,7961,928
517
4,134
6,951
14,710
Fubon FHC TPFB P&C Life Sec
9M08 9M09
Fubon Financial – net income overview
NT$ m
Note: 75% of Fubon Bank (HK) earning is accounted in this page.Antai’s net profit is accounted from 11 Feb, 2009
Net income as of Sep,2009 =NT$14,710m
NT$ m
Net income-Subsidiary comparison
P&C,
NT$517,
4%
Life,
NT$6,951,
47%
Sec,
NT$1,928,
13%
Others,
NT$1,180,
8%TPFB,
NT$4,134,
28%
5
Fubon Financial – Return on assets and return on equity
Return on assets Return on equity
* Note: Annualized basis
0.67%
0.50%
0.82%
0.57%
0.79%
2005 2006 2007 2008 Sep-09
6.8%
5.3%
8.8%
7.0%
11.3%
2005 2006 2007 2008 Sep-09* *
6
Fubon Financial – Per share calculations
Book value per share (NT$) EPS (NT$)
1.39
1.09
1.87
1.41
1.81
2005 2006 2007 2008 Sep-09
20.1621.19 21.47
18.62
24.88
2005 2006 2007 2008 Sep-09
7
Balance
Sep 09
Available-for-sale movement in shareholder equity
Fubon FHC (9M09)
NT$ m
Movement by subsidiaries (9M09)
NT$ m
8
Balance
Dec 08
Changed in
1Q09
Changed in
2Q09
Changed
in3Q09
(NT$18,316)
+NT3,062
+NT9,398
+NT23,228 NT17,372
NT$680
NT$1,089
NT$1,055
NT$3,339
NT$29,526
NT$35,687
FHC Life P&C Sec TPFB Others
Sec, NT$50
, 2%PC, NT$67
, 2%
AM, NT$1
, 0%
Life, NT$1,261
, 42%
FBHK, NT$264
, 9%
TPFB, NT$1,331
, 45%
TPFB
FBHK
Life
PC
Sec
AM
Assets breakdown by subsidiaries
Total assets=NT$2,972.4 billion(30 Sep, 2009)
NT$bn
Note: Pie charts & statistics represent breakdown of six major subsidiaries.
9
Fubon Financial – Profit breakdown by business groups
Pretax profit by business groups (9M09) Pretax profit- Business group
Wealth
Mgmt,
NT$66 , 0%
Insurance,
NT$8,575 ,
53%
Inv Mgmt,
NT$634 ,
4%
Consumer
Fin,
NT$1,630 ,
10%
Corp & Inv
Bk,
NT$3,301 ,
20%
Fin Mkt,
NT$2,124 ,
13%
886
-358
1,241
756
1,071
480 482
989
-58Fin Mkt Wealth Mgmt Corp & Inv Bk
1Q09 2Q09 3Q09
496 391
6,077
296166
463172
2,035
743
Insurance Inv Mgmt Consumer Fin
10
Agenda
Performance highlights of the group
Performance review of banking business
Performance review of insurance business
Update on CDO exposure
11
94.8 78128.8 123.1 142.1
395.4 401.8
389.2 390.9
226.4 238.1
246.3 258.1 271.2
380.6
20.9 22.521.5
22.5 21.78.7
8.9
9.510
8.715.4 14.6
13.111.712.3
Sep-08 Dec-08 Mar-09 Jun-09 Sep-09
Credit CardRevolving
Consumer -unsecured
Consumer - secured
Mortgage
Corporate
Government
Taipei Fubon Bank – Loan breakdown
Note: (1) Overdue loans not included.
(2) Cash Card loans are under unsecured consumer portfolio. Outstanding balance NT$104m as of Sep 2009.
815.7807.6764.5 836.0762.9 YTD+ 9.4%
(YTD+82.2%)
(YTD+13.9%)
(YTD- 5.3%)
Total loans (1) (NT$bn)
12
83.8%79.9% 81.5% 81.6% 80.7%
Sep-08 Dec-08 Mar-09 Jun-09 Sep-09
Taipei Fubon Bank-Loan & Deposit
Loan growth YoY
Deposit growth YoY
Fubon’s Loan/ Deposit ratio
-1.5%
3.5%
8.5%
13.5%
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09
Industry Fubon
9.96%
-1.13%
0.0%
5.0%
10.0%
15.0%
20.0%
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09
Industry Fubon
11.52%
10.28%
13
28% 32% 36%41%
72% 68% 64%59%
4Q08 1Q09 2Q09 3Q09
Lower cost Higher cost
41% 42% 44% 46%
59% 58% 56% 54%
4Q08 1Q09 2Q09 3Q09
Lower cost Higher cost
795 817 859
Deposit base continues to grow and the mix improving
Averaged NTD deposits mix Averaged USD deposits mix
NT$bn NT$bn175 181 172878 164
14
1.54%
3.28% 3.15%
2.12%
1.66%
0.68%0.78%
1.03%
1.67%1.78%
0.89%0.90%1.12%1.54%1.58%
3Q08 4Q08 1Q09 2Q09 3Q09
Avg rate of IEA
Avg rate of IBL
NIM
1.64%
3.67%3.47%
1.83%1.92%
2.34%
2.11%
3.23%3.40%
1.72%1.68% 1.59%
0.65%
1.01%
0.76%
3Q08 4Q08 1Q09 2Q09 3Q09
Loan rate (incl.Credit cards)
Loan rate
Deposit rate
Taipei Fubon Bank – Interest yields overview
15
Taipei Fubon Bank – Interest & fee Income
4,587 4,420
3,2272,731
1,295
785
1,300
2,732
894
1,082
3Q08 4Q08 1Q09 2Q09 3Q09
Net Fee Income
Net Interest Income
Net Fee/Major Incomes
Major Incomes
22.0%
5,882
15.1%
5,205
21.7%
4,121
28.4%
3,813
32.2%
4,032
Note: Fees booked under insurance agency subsidiaries are excluded.
NT$ m
16
702
410554
696
947
237
214
189
210
198
375
312
313
310
374163
53
118
123
125
3Q08 4Q08 1Q09 2Q09 3Q09
Other
Corporate banking
Credit card
Wealth management
Taipei Fubon Bank – Net fee income breakdown
Note: Including fees booked at insurance agency subsidiaries. Wealth management fee is defined as fee income from sales of funds & insurance products.
57.6%52.0%47.2%41.5%47.6%
WM fee as % of total banking fee
NT$ m
17
11,02216,075 14,189
17,891 16,287
6,128368 1,746
2,9972,240
7,179 9,1616,812
5,742
6,913 5,75513,856
22,58034,411
7 96
337
256
123
3,871
3Q08 4Q08 1Q09 2Q09 3Q09
Others
Overseas Funds
Domestic Funds
Structured Notes & Deposits
Insurance Premium
Taipei Fubon Bank – Wealth management business
947696554410702
Total Wealth Management Fess (NT$MN)
31,249 31,455
36,940
Note: Others represents collective investment trust funds
Wealth Management Sales Breakdown
NT$ m
49,466
56,932
18
Provision for structured notes sales in Taipei Fubon
Provision for potential compensation with individual investors
Potential compensation commitment with individual investors
271Total reserve
(149)minus: claims year to Sept 2009
300Provision made in June 09
120Provision made in year 2008
1,032Total
(960)minus: settled amount
697Other outstanding disputes from non-Lehman products
1,295Sales of Lehman structured note
19
81.3%
73.6%
76.9% 75.9%
80.3%
Sep-08 Dec-08 Mar-09 Jun-09 Sep-09
Taipei Fubon Bank – Quality of loan book
*Note: Credit card revolving balance is included.
Provision & Recovery *
0.72%0.79% 0.73%
0.66% 0.65%
Sep-08 Dec-08 Mar-09 Jun-09 Sep-09
NPL ratio
Coverage ratio
Provision as of average loans*
0.38%
(390)
5,532
434
(1,587)
762
2Q09
0.43%
(229)
5,303
438
(1,307)
855
3Q09
4231,2641,164Recovery
5,9225,8266,618Reserve
96(792)(1,875)Reserve
Movement
0.40%0.76%1.53%Annualized Credit cost
(1,129)(7,602)(13,342)Write-Off
8025,54710,302Provision
1Q0920082007(NT$ m)
20
Corporate loan quality update (1)
New NPL formation of Corp loans
NT $m
0
200
400
600
800
1,000
1,200
1,400
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09
21
Source of new NPL formation :
� 85% of the new NPL formation in Q309 came from LA branch in US
� To comply with a more stringent provisioning requirement from Fed
US exposure of Taipei Fubon Bank :
� Only one branch in LA
� Loan outstanding of LA branch represents 2.6% of the bank’s loan
Corporate loan quality update (2)
90 days overdue ratio of SME
2.52%
3.88%
0.00%
2.00%
4.00%
6.00%
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09
22
90 days overdue ratio of large corporate
0.60%
0.42%
0.00%
0.20%
0.40%
0.60%
0.80%
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09
NPL ratio and coverage of corporate loans
1.1%
1.7%
54.3%
47.3%
0.8%
1.0%
1.2%
1.4%
1.6%
1.8%
2.0%
Mar-07'
Jun-07'
Sep-07'
Dec-07'
Mar-08'
Jun-08'
Sep-08'
Dec-08'
Mar-09'
Jun-09'
Sep-09'
30%
40%
50%
60%
70%
80%
NPL ratio Coverage ratio
Mortgage quality: NPL amount and NPL ratio
Overdue 30+ days loans Overdue 90 day+ loans
Overdue ratio: 30+ day Overdue ratio: 90+ days
NT$ m NT$ m
-
300
600
900
1,200
1,500
1,800
Jun-08' Sep-08' Dec-08' Mar-09' Jun-09' Sep-09'
-
300
600
900
1,200
1,500
1,800
Jun-08' Sep-08' Dec-08' Mar-09' Jun-09' Sep-09'
0.36%
0.76%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
Jun-08' Sep-08' Dec-08' Mar-09' Jun-09' Sep-09'
0.62%
0.31%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
Jun-08' Sep-08' Dec-08' Mar-09' Jun-09' Sep-09'
23
Recovery/Repay
ment, NT$2.89 ,
25.1%
Performing
loans, NT$3.32 ,
28.8%
M1 and above
NT$0.2 ,
1.6%Write-offs,
NT$5.13 , 44.5%
On B/S as of 3Q09
Consumer restructured loan update
Restructured loan in Year 2006Total=NT$11.5bn
Re-default trend (M1+ and write-offs)
7.2%5.2% 4.7% 4.2% 2.9% 1.9% 1.6%
37.4% 38.8% 39.7% 40.6% 42.7% 44.1% 44.5%
Sep-08 Oct-08 Nov-08 Dec-08 Mar-09 Jun-09 Sep-09
M1 and above Write-Offs
46.0%44.6% 44.0% 44.4% 44.8% 45.6%
Note: M1+ refers to loans past due 30 days or above
46.1%
24
Consumer debt clearance update
Application by loan type
8871,116
1,3351,502
92
100
71
196
625
762
892
816
Dec-08 Mar-09 Jun-09 Sep-09
Write offs NPLS Current
Quarterly influx of application
No. of cases
1,604
1,978
NT$ m
2,298
4,244 4,337
3,7273,559
2,735
3Q08 4Q08 1Q09 2Q09 3Q09
2,514
25
Agenda
Performance highlights of the group
Performance review of banking business
Performance review of insurance business
Update on CDO exposure
26
2,451 2,460 2,567 2,393 2,481
1,041 1,011
1,525
963 767
475 360
473
424 444
238223
388
232 243
1,0051,031
1,107
1,078 1,076
3Q08 4Q08 1Q09 2Q09 3Q09
Others
Engineering
Marine
Fire
Auto
Fubon Insurance – operating snapshot
Direct written premium breakdown Net combined ratio
NT $m
5,210 5,085
6,060
46.3% 45.0%40.7%
49.9%55.9%
34.0%
33.4%46.9%
36.1%
32.8%
3Q08 4Q08 1Q09 2Q09 3Q09
Net Claim Ratio Net Expense Ratio
Note: Reinsurance premiums are excluded
80.3%5,090
91.8%
76.8%
82.7%
89.3%
27
5,011
32,030
14,087
23,008 62,287
13,013
44,102
47,860
18,606
4,538
2,327
9M 08 9M 09
Fubon Life- FYP breakdown by products
36,962 56,03445,032
FYP breakdown by products
NT $m
Note: data before the merger of Fubon and Antai is on a pro-forma basis
28
35%17%
138,027123,832
9,3562,934 1,797
20,720
11,625
29,9425,140
6,666
15,472
15,974
1,207
12,656
1,654
1,791
1,093
1Q09 2Q09 3Q09
Health, Accidents and others
Traditional Life
Investment-Linked
Interest-Sensitive Annuity
Interest-Sensitive Life
14%5%
10%21%
35%
7%
40%
68%
9M 08 9M 09
Traditional Life
Investment-Linked
Interest-SensitiveAnnuity
Interest-Sensitive Life
FYP breakdown as of Sep 2009
Fubon Life- breakdown by products
APE* breakdown as of Sep 2009
*Note : APE is the abbreviation of annual premium equivalent .
26%
10%
19%45%
39%9%
17%
35%
9M 08 9M 09
29
FYP breakdown as of Sep 2009
Others
11%Tied Agents
16%
Fubon Life- breakdown by channels
APE* breakdown as of Sep 2009
Others
12%
Tied Agents
38%
*Note : APE is the abbreviation of annual premium equivalent .
Bancassurance-TPFB34%
Bancassurance-TPFB20%
Bancassurance-External
39%
Bancassurance-External
30%
30
Investment portfolio
31
5.3%31.6%336.426.2%234.8Overseas
-5.3%68.4%729.373.8%659.8Domestic
-100.0%1,065.7100.0%894.6Total Investments
2.1%5.0%53.82.9%26.3Real Estate
-0.6%3.9%41.34.5%40.2Policy Loans
-1.3%3.7%39.85.0%44.6Mortgage Loans
0.1%0.3%3.00.2%1.9Equity- Overseas
2.9%9.1%97.26.2%55.5Equity- Domestic
5.3%31.3%333.426.0%232.9Fixed Income- Overseas
-7.2%43.0%458.050.2%448.9Fixed Income- Domestic
-1.3%3.7%39.24.9%44.2Deposit and Cash equivalents
Weighting Change
%Amount%Amount(NT$bn)
2009/9/302008/12/31
Breakdown of fixed income investment
Domestic Fixed Income Portfolio Oversea Fixed Income Portfolio
Gov Bond &
T-Bills
74%
Bank notes
14%
Corp bonds
8%
Bond Funds
3%Others
1%
CDO
2%
Corp
bonds
15%
Others
1%Gov Bonds
& T-Bills
18%
Bank notes
42%
Agency
CMO/MBS
22%
32
USD
unhedged
6%
Fully
Hedged
85%
Basket
Hedge
7%
Other
currencies
2%
Hedging cost and composition
138bps
-0.463
1H 2009
-194bps
-132bps
-0.44
-0.94
2Q 2009
114bps
-0.379
9M 2009
-89bps
-87bps
-0.02
-0.72
3Q 2009
155bpsImplied hedging cost- on shore
-0.526TWD/USD swap points-on shore
1Q 2009Reference:
3bpsHedging cost after FX gain/loss
-153bpsHedging cost
0.99FX gain (loss) (NT$bn)
-0.97 Hedging cost (NT$bn)
1Q 2009Fubon LifeComposition as of 30 Sep
33
Cost of liability & Investment return
Cost of liability and investment return Cost* of liability on new money
4.95% 4.88%4.71%
3.98%
3.12%
3.62%
Mar-09 Jun-09 Sep-09
Cost of liability Investment return
2.00%
2.20%
2.40%
2.60%
2.80%
3.00%
3.20%
3.40%
Dec-08 Mar-09 Jun-09 Sep-09
2.19%
2.59%
*Note: The cost is based on 12 months moving average
34
2.78%
3.27%
Agenda
Performance highlights of the group
Performance review of banking business
Performance review of insurance business
Update on CDO exposure
35
Details of CDO and SIV exposure
8,155Total
5Fubon Bank HK
SIV
2.9%0.0%0.0%73.9%23.1%0%8,150Subtotal
100.0%0.0%0.0%0.0%0.0%0%50Fubon Bank HK
0Taipei Fubon Bank
10.8%0.0%0.0%40.9%48.2%0%668Fubon P&C
1.6%0.0%0.0%77.4%21.0%0%7,432Fubon Life
CDO
B or below
BBBBBAAAAAA
Credit rating distribution (%)
Net amount
NT$ m
36
Update of CDO-related write down
8,14113,7165,5752,0532,623195703Total (75% of Fubon HK)
8,15514,2946,1392,3822,861195701Total
51,3441,33996137800Fubon Bank HK
031531517414100Taipei Fubon Bank
SIV::::
50966916352575-2-9Fubon Bank HK
6681,30864105170123Fubon P&C
7,4329,4301,99801,214197587Fubon Life
Corporate CDO::::
0206206206000Fubon Life
07257256883700Taipei Fubon Bank
Subprime CDO::::
Cumulative200720081H093Q09
Nominal net amount
Nominal gross amount
Impairment Losses through P&LNT$ m
37
Thank you
38
(NT$ million) TPFB P/C Fubon Life Sec AM FHC Combined
Revenues
Insurance premiums 0 11,500 199,492 0 0 0 210,992
Commissions and fees 3,276 0 1,179 3,233 297 0 7,984
Loan interest 10,872 0 0 609 0 0 11,481
Other interest and dividends 5,449 1,473 23,869 611 2 182 31,587
Principal transactions 3,285 (1,044) 2,153 720 9 575 5,698
Realized gains (losses) -- Debt 572 43 1,765 74 0 0 2,454
Realized gains (losses) -- Equity (550) 242 3,148 261 0 0 3,102
Other gains (losses) 2,731 (111) 4,069 (0) 0 591 7,280
Unrealized losses, net recovery (provision) 532 (1,218) (6,830) 385 9 (16) (7,138)
Other income 656 (1) 1,249 298 0 14,675 3,335
Total revenues 23,538 11,929 227,942 5,471 308 15,432 271,077
Interest expense (7,267) (7) (27) (31) 0 (692) (8,024)
Total revenues, net of interest expense 16,271 11,922 227,915 5,441 308 14,740 263,054
0 0 0 0 0 0 0
Benefits, claims, and credit losses 0 0 0 0 0 0 0
Provisions for benefits and claims 0 (5,611) (204,375) 0 0 0 (209,987)
Provision for credit losses (2,420) 3 0 0 0 0 (2,417)
Total benefits, claims and credit losses (2,420) (5,608) (204,375) 0 0 0 (212,403)
0
Operating expenses (8,864) (4,953) (16,663) (3,205) (250) (364) (34,299)
Net operating profit 4,987 1,361 6,877 2,236 58 14,376 16,351
Net non-operating income (114) 36 161 (36) (26) 6 28
Pretax income 4,873 1,396 7,038 2,200 32 14,382 16,379
Income taxes (740) (880) (87) (272) (18) 328 (1,669)
Accumulative effect of accounting changes 0 0 0 0 0 0 0
Net income 4,134 516 6,951 1,928 14 14,710 14,710
Memo:
- Commissions and fees: net of fee expenses for banks and insurers.
-
- Other gains (losses): FX and derivatives gains/losses.
- Other income: mainly income recognized under equity method for TPFB bank and FHC.
- Operating expenses: including provision for special reserves
- Antai's net profit is accounted from 11, Feb 2009
Fubon Financial -- Income statement (preliminary)
Other interest: including interest for credit card revolving, interbank lending & bonds, and gains from money market paper. For insurance companies,
cash dividends and rental income are also included.
Attachment1
Fubon Financial - Financial summary
QoQ
2005 2006 2007 2008 9M 2008 9M 2009 Change 1Q 2Q 3Q Change
Income Statement Data
Revenues :
Insurance premiums 84,157 73,793 78,091 145,874 96,317 210,992 119.1% 63,737 57,617 89,638 55.6%
Net commissions and fees 9,586 10,784 15,409 10,303 8,888 7,984 -10.2% 1,706 2,957 3,322 12.3%
Interest and dividends 45,790 54,278 52,021 53,962 41,411 43,068 4.0% 11,432 13,408 18,228 36.0%
Principal transactions 5,839 4,733 5,491 354 997 5,698 471.8% 1,653 2,663 1,382 -48.1%
Others * 944 2,666 3,194 2,231 2,549 3,335 30.8% 1,251 559 1,525 172.7%
Total revenues 146,315 146,255 154,206 212,724 150,162 271,077 80.5% 79,778 77,204 114,095 47.8%
Interest expense 17,934 24,803 21,088 20,567 16,048 8,024 -50.0% 3,086 2,525 2,413 -4.4%
Total revenues, net of interest expense 128,382 121,452 133,118 192,157 134,114 263,054 96.1% 76,692 74,680 111,682 49.5%
Benefits, claims and provision for loan losses 92,367 86,444 84,325 148,260 97,771 212,403 117.2% 63,521 58,638 90,244 53.9%
Total operating expenses 24,941 26,045 30,959 31,911 23,794 34,299 44.2% 10,516 11,438 12,345 7.9%
Net non-operating income 885 643 (1,144) (232) -657 28 104.2% 159 (382) 251 165.6%
Income before Tax 11,958 9,606 16,689 11,754 11,893 16,379 37.7% 2,814 4,222 9,343 121.3%
Net Income 10,641 8,400 14,432 10,875 10,170 14,710 44.6% 2,436 3,777 8,496 124.9%
Balance Sheet Data
Total assets 1,654,073 1,724,453 1,803,936 2,006,720 1,934,829 2,972,358 53.6% 2,729,308 2,813,193 2,972,358 5.7%
Shareholders' equity 155,604 163,532 165,728 143,715 148,305 202,144 36.3% 158,549 171,031 202,144 18.2%
Summary ratios
Double leverage 108% 102% 102% 111% 103% 109% 114% 110% 109%
Equity / Assets 9.4% 9.5% 9.2% 7.2% 7.6% 6.8% 5.8% 6.1% 6.8%
Return on average assets 0.67% 0.50% 0.82% 0.57% 0.74% 0.79% 0.41% 0.55% 1.17%
Return on average equity 6.81% 5.26% 8.77% 7.03% 8.82% 11.34% 6.45% 9.17% 18.21%
Dividend per share NT$1.15 NT$1.00 NT$1.50 NT$0.00
Note: "Others": reflects income recognized for subsidiaries & elimination for consolidation purpose .
NT$ millions, except for percentagesFull Year 2009Comparison of 9M Results
Attachment2
Taipei Fubon Bank - Financial summary
QoQ
2005 2006 2007 2008 9M 2008 9M 2009 Change 1Q 2Q 3Q Change
Income statement data
Interest income 34,577 41,585 37,041 37,755 28,962 15,957 -44.9% 6,079 4,991 4,888 -2.1%
Interest expense 16,645 23,293 19,859 19,780 15,407 7,267 -52.8% 2,852 2,260 2,156 -4.6%
Net interest income 17,932 18,292 17,181 17,975 13,555 8,690 -35.9% 3,227 2,731 2,732 0.0%
Net fee income 5,231 5,731 7,268 5,331 4,546 3,276 -27.9% 894 1,082 1,300 20.2%
Other income 4,291 1,540 2,799 2,269 1,348 4,305 219.4% 1,520 1,150 1,635 42.2%
Total revenue 27,454 25,563 27,249 25,576 19,448 16,271 -16.3% 5,641 4,962 5,667 14.2%
SG&A expense 10,859 11,648 12,389 12,677 9,475 8,864 -6.5% 2,971 2,932 2,961 1.0%
Provision for credit losses 11,441 15,034 10,302 5,512 3,839 2,420 -37.0% 802 762 855 12.2%
Net non-operating income 127 210 (509) 441 (102) (114) -11.0% 102 (206) (10) 95.4%
Income before tax 5,280 (909) 4,048 7,829 6,031 4,873 -19.2% 1,970 1,062 1,841 73.4%
Net income 5,034 440 3,354 6,021 4,642 4,134 -11.0% 1,756 898 1,479 64.7%
Balance sheet data
Gross loans 558,233 618,406 662,359 758,269 756,511 831,888 10.0% 802,227 810,747 831,888 2.6%
Credit card revolving loans 26,902 21,920 17,774 14,639 15,437 11,687 -24.3% 13,061 12,306 11,687 -5.0%
NPL (incl. Loans under surveillances) 13,489 12,003 7,885 6,013 5,435 5,375 -1.1% 5,873 5,342 5,375 0.6%
Allowance for loan losses 8,902 7,663 5,308 4,422 4,416 4,078 -7.7% 4,518 4,288 4,078 -4.9%
Total assets 995,120 1,085,028 1,099,741 1,228,059 1,213,923 1,331,374 9.7% 1,235,805 1,278,186 1,331,374 4.2%
Deposits 733,548 802,964 816,152 967,533 937,375 1,045,345 11.5% 1,000,515 1,009,314 1,045,345 3.6%
Shareholders' equity 74,898 72,279 75,094 79,422 77,786 80,288 3.2% 81,162 78,439 80,288 2.4%
Summary ratios
Loan-to-Deposit spread (incl. credit cards) 3.10% 2.59% 2.13% 2.02% 2.02% 1.22% 1.33% 1.16% 1.18%
Loan-to-Deposit spread 2.46% 1.96% 1.80% 1.75% 1.79% 1.02% 1.10% 0.96% 0.99%
Net interest margin 2.01% 1.90% 1.66% 1.61% 1.62% 0.97% 1.12% 0.90% 0.89%
Net fee income / Total revenue 19.1% 22.4% 26.7% 20.8% 23.4% 20.1% 15.9% 21.8% 22.9%
Cost-to-Income ratio 39.6% 45.6% 45.5% 49.6% 48.7% 54.5% 52.7% 59.1% 52.3%
Return on average assets 0.5% 0.0% 0.3% 0.5% 0.5% 0.4% 0.6% 0.3% 0.5%
Return on average equity 6.4% 0.6% 4.6% 7.8% 8.1% 6.9% 8.7% 4.5% 7.5%
NPLs / Gross loans 2.42% 1.94% 1.19% 0.79% 0.72% 0.65% 0.73% 0.66% 0.65%
Allowance / Gross loans 1.6% 1.2% 0.8% 0.6% 0.6% 0.5% 0.6% 0.5% 0.5%
Allowance / NPLs 66.0% 63.8% 67.3% 73.6% 81.3% 75.9% 76.9% 80.3% 75.9%
Equity / Assets 7.5% 6.7% 6.8% 6.5% 6.4% 6.0% 6.6% 6.1% 6.0%
Gross loan to deposit ratio (incl. credit cards) 79.8% 79.7% 83.3% 79.9% 82.4% 80.7% 81.5% 81.5% 80.7%
Gross loan to deposit ratio 76.1% 77.0% 81.2% 78.4% 80.7% 79.6% 80.2% 80.3% 79.6%
Note: -
2009NT$ millions, except for percentages
Comparison of 9M ResultsFull Year
Attachment 3
Taipei Fubon Bank - Fee income breakdown & credit card statistics
Net Fee Income Breakdown
(NT$ m)
FX 353 4.4% 88 4.2% 88 5.1% 89 6.0% 79 8.0% 64 5.5% 75 5.6% 78 4.8%Agency 119 1.5% 29 1.4% 30 1.7% 32 2.2% 27 2.7% 18 1.5% 20 1.5% 21 1.3%Funds - custody 425 5.3% 86 4.1% 104 6.0% 107 7.2% 80 8.1% 126 10.8% 110 8.2% 128 7.8%Funds - sales 5,135 63.8% 1,142 54.6% 717 41.1% 520 35.2% 206 20.8% 274 23.4% 439 32.8% 603 36.7%Credit card 232 2.9% 121 5.8% 199 11.4% 237 16.0% 214 21.6% 189 16.1% 210 15.7% 198 12.1%Guarantee 226 2.8% 57 2.7% 59 3.4% 59 4.0% 60 6.1% 59 5.0% 57 4.2% 55 3.3%Lottery 0 0.0% 0 0.0% 1 0.0% 65 4.4% -46 -4.7% 10 0.8% 13 1.0% 14 0.8%Syndication 545 6.8% 139 6.6% 210 12.0% 89 6.0% 66 6.6% 46 3.9% 48 3.6% 92 5.6%Other 233 2.9% 96 4.6% 85 4.9% 98 6.6% 100 10.1% 108 9.2% 110 8.2% 111 6.7%Insurance * 780 9.7% 335 16.0% 249 14.3% 182 12.3% 204 20.6% 279 23.8% 257 19.2% 344 20.9%Total net fee income 8,048 100.0% 2,093 100.0% 1,742 100.0% 1,476 100.0% 990 100.0% 1,174 100.0% 1,339 100.0% 1,644 100.0%Of which, Wealth management 5,915 73.5% 1,477 70.6% 966 55.4% 702 47.6% 410 41.4% 554 47.2% 696 52.0% 947 57.6%* Booked at subsidiaries
* FX,Agency,Funds-custody,Guarantee,Syndication are classified as corporate banking fees and Funds-sales, Insurance are classified as wealth management fees in the presentation.
Credit Card Statistics
Cards in force
Active cards
Outstanding receivables (NT$m)
Outstanding revovling balance (NT$m)
YTD spending (NT$m)
Avg per-card spending per mo. (NT$)
90-day DLQ
30-day DLQ
YTD net charge-off ratio (annualized)
0.72%
2.27%
6.80%
22,129
12,306
43,959
3,442
2Q09
Jun-09
2,084,209
1,421,569
1Q08 2Q08 3Q08 4Q08 1Q09
2007 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09
2007
2,391,390 2,393,287 2,298,246 2,247,809 2,187,774 2,136,223
1,571,312 1,562,986 1,523,744 1,506,626 1,461,751 1,451,462
29,468 27,120 27,246 25,921 24,798 21,686
17,774 16,717 16,057 15,437 14,639 13,061
119,209 27,191 52,853 79,131 103,472 21,281
4,363 3,759 3,716 3,768 3,742 3,306
1.02% 0.89% 0.87% 1.15% 0.89% 0.94%
3.07% 2.98% 2.87% 3.21% 2.99% 3.02%
8.71% 8.81% 7.27%11.35% 9.02% 8.74%
3Q09
Sep-09
1,982,046
1,416,735
0.63%
1.92%
5.49%
22,226
11,687
69,850
3,724
Attachment4
Fubon Insurance - Financial summary
QoQ
2005 2006 2007 2008 9M 2008 9M 2009 Change 1Q 2Q 3Q Change
Income statement data
Gross written premium 25,453 24,197 23,939 23,130 17,732 17,012 -4.1% 6,385 5,399 5,228 -3.2%
Net written premium 14,935 14,858 15,127 15,588 11,833 11,496 -2.8% 3,975 3,718 3,804 2.3%
Net earned premium 14,507 14,884 14,764 15,566 11,663 11,500 -1.4% 3,885 3,798 3,817 0.5%
Net claims and claims adjustments 8,628 8,108 7,009 7,324 5,569 5,611 0.8% 1,582 1,896 2,134 12.6%
underwriting & operating expense 5,067 5,521 5,778 5,736 3,907 3,922 0.4% 1,402 1,246 1,274 2.2%
Underwriting profit 923 1,243 1,433 1,851 1,637 1,458 -10.9% 722 507 229 -54.8%
Total investment income 2,337 1,948 1,862 1,460 1,198 422 -64.8% 277 (642) 787 N.M
Net non-operating income (369) (365) (651) (820) (675) (484) 28.3% (260) (214) (10) 95.1%
Income before tax 2,892 2,826 2,644 2,490 2,160 1,396 -35.4% 739 (348) 1,006 N.M
Net income 2,504 2,400 2,012 2,045 1,796 516 -71.3% 599 (968) 886 N.M
Balance sheet data
Fixed income assets 25,461 20,629 19,994 20,532 19,938 21,394 7.3% 18,835 18,971 21,394 12.8%
Investment assets 49,093 41,533 43,138 42,780 43,937 46,559 6.0% 41,594 43,178 46,559 7.8%
Total assets 62,805 51,590 54,448 59,047 61,263 67,328 9.9% 61,868 63,019 67,328 6.8%
Reserves for operations and liabilities 22,069 22,699 24,639 34,094 34,626 35,955 3.8% 35,205 35,021 35,955 2.7%
Total liabilities 33,297 29,959 33,209 41,677 43,099 46,101 7.0% 43,780 44,078 46,101 4.6%
Shareholders' equity 29,508 21,631 21,239 17,370 18,164 21,227 16.9% 18,088 18,941 21,227 12.1%
Summary ratios
Net claim ratio 59.5% 54.5% 47.5% 47.1% 47.7% 48.8% 40.7% 49.9% 55.9%
Net expense ratio 34.9% 37.1% 39.1% 36.8% 33.5% 34.1% 36.1% 32.8% 33.4%
Net combined ratio 94.4% 91.6% 86.6% 83.9% 81.2% 82.9% 76.8% 82.7% 89.3%
Interest yield on fixed income investment 3.9% 3.3% 3.7% 4.3% 4.4% 3.9% 4.6% 3.9% 3.8%
Total investment return 4.8% 4.3% 4.4% 3.4% 3.7% 1.3% 2.6% -6.1% 7.0%
Solvency margin (NWP / Equity) 50.6% 68.7% 71.2% 89.7% 86.9% 72.2% 87.9% 78.5% 71.7%
Retention ratio 58.7% 61.4% 63.2% 67.4% 66.7% 67.6% 62.3% 68.9% 72.8%
Return on average assets 4.1% 4.2% 3.8% 3.6% 4.1% 1.1% 4.0% -6.2% 5.4%
Return on average equity 8.5% 9.4% 9.4% 10.6% 12.2% 3.6% 13.5% -20.9% 17.6%
Full YearNT$ millions, except for percentages
Comparison of 9M Results 2009
Attachment 5
Fubon Securities - Financial summary
QoQ
2005 2006 2007 2008 9M 2008 9M 2009 Change 1Q 2Q 3Q Change
Income statement data
Brokerage commissions 2,814 3,721 5,046 3,291 2,808 3,138 11.7% 619 1,323 1,195 -9.6%
Net interest income 995 1,247 1,607 1,344 1,126 732 -35.0% 190 267 276 3.4%
Fee income 233 276 210 165 112 136 21.5% 34 42 60 42.3%
Net principal transactions 1,088 1,808 2,392 261 406 1,176 189.5% 267 226 682 201.5%
Net financial products gains 51 239 (194) 168 199 (0) N.M 1 (17) 17 N.M
Total operating revenue 5,253 7,358 9,167 5,290 4,692 5,193 10.7% 1,122 1,869 2,202 17.9%
Total operating expense 4,277 4,139 4,886 4,194 3,193 3,205 0.4% 882 1,175 1,149 -2.3%
Net non-operating income 358 653 382 253 265 212 -19.9% 75 (10) 147 N.M
Income before tax 1,334 3,871 4,663 1,349 1,763 2,200 24.7% 315 683 1,201 75.9%
Net income 917 2,859 3,923 1,199 1,433 1,928 34.5% 309 536 1,082 101.8%
Balance sheet data
Margin loans 17,720 22,320 26,225 8,510 14,227 16,951 19.1% 10,875 15,154 16,951 11.9%
Total assets 59,827 60,548 63,727 46,390 46,074 49,573 7.6% 39,012 43,385 49,573 14.3%
Current liabilities 26,485 26,618 27,962 13,373 12,657 15,896 25.6% 10,574 13,826 15,896 15.0%
Total liabilities 28,905 27,412 28,827 13,809 13,134 19,015 44.8% 11,015 14,252 19,015 33.4%
Total shareholders' equity 30,922 33,136 34,900 32,581 32,940 30,558 -7.2% 27,997 29,133 30,558 4.9%
Summary ratios
Consolidated data
Total expenses / Total revenues 81.4% 56.3% 53.3% 79.3% 68.1% 61.7% 78.6% 62.9% 52.1%
Return on average assets 1.5% 4.8% 6.3% 2.2% 4.1% 5.4% 2.9% 5.2% 9.3%
Return on average equity 2.9% 8.9% 11.5% 3.6% 5.6% 8.1% 4.1% 7.5% 14.5%
Margin loans / Total assets 29.6% 36.9% 41.2% 18.3% 30.9% 34.2% 27.9% 34.9% 34.2%
Margin loans / Shareholders' equity 57.3% 67.4% 75.1% 26.1% 43.2% 55.5% 38.8% 52.0% 55.5%
Equity / Total assets 51.7% 54.7% 54.8% 70.2% 71.5% 61.6% 71.8% 67.1% 61.6%
Other Data - Unconsolidated
Revenue / Employee 2.4 3.5 4.5 2.4 2.9 3.2 2.1 3.5 4.1
Commission / Broker 2.2 3.2 4.6 2.7 3.2 3.5 2.1 4.6 3.9
Compensation / Revenue 34% 29% 28% 38% 34% 29% 38% 31% 24%
2009NT$ millions, except for percentages
Full Year Comparison of 9M Results
Attachment 6
Fubon Asset Management - Financial summary
QoQ
2005 2006 2007 2008 9M 2008 9M 2009 Change 1Q 2Q 3Q Change
Income statement data
Fee and commission income 1,054 707 697 422 352 297 -15.6% 78 101 118 16.8%
Total operating expense 510 416 422 350 (279) 250 N.M 74 89 87 -2.2%
Net non-operating income (315) (588) (683) (657) (586) (15) 97.4% (15) (2) 2 N.M
Income before tax 229 (298) (408) (587) (515) 32 N.M (11) 10 33 230.0%
Net income 104 (393) (478) (366) (535) 14 N.M (7) (5) 26 N.M
Balance sheet data
Total assets 1,627 1,224 1,045 924 777 941 21.2% 891 899 941 4.7%
Shareholders' equity 1,468 1,075 597 865 695 879 26.4% 858 853 879 3.1%
Other data
AUM 187,800 157,400 124,700 94,800 92,100 127,200 38.1% 115,700 121,700 127,200 4.5%
Bond fund 132,600 93,300 49,600 46,200 35,500 53,900 51.8% 64,800 58,400 53,900 -7.7%
Equity 20,100 18,600 24,000 12,200 15,700 25,000 59.2% 13,900 20,400 25,000 22.5%
Others 35,100 45,500 51,100 36,400 40,800 48,300 18.4% 37,000 42,900 48,300 12.6%
Summary ratios
Expense ratio 48.4% 58.9% 60.5% 82.9% -79.3% 84.2% 94.9% 88.1% 73.7%
Return on average assets 6.0% -27.6% -42.1% -37.2% -78.3% 2.0% -3.1% -2.2% 11.3%
Return on average equity 6.7% -30.9% -57.2% -50.1% -110.4% 2.1% -3.3% -2.3% 12.0%
2009NT$ millions, except for percentages
Full Year Comparison of 9M Results
Attachment7
Fubon Life - Financial summary
QoQ
2007 2008 9M 2008 9M 2009 Change 1Q 2Q 3Q Change
Income statement data
First year premium(exclude investment-linked) 51,771 118,337 77,085 125,720 63.1% 43,864 32,210 49,647 54.1%
Total earned premium (net) 153,903 208,517 141,587 208,310 47.1% 68,669 53,819 85,821 59.5%
Total investment income 30,492 24,717 23,702 28,726 21.2% 7,278 9,883 11,565 17.0%
Other income 14,846 10,925 9,120 2,418 -73.5% 1,097 203 1,118 450.4%
Total operating revenue 199,241 244,159 174,408 239,454 37.3% 77,045 63,906 98,504 54.1%
Claim and benefit expense 88,387 92,787 64,997 60,637 -6.7% 17,166 19,027 24,444 28.5%
Net commission expense 11,900 11,567 9,210 8,858 -3.8% 3,142 2,367 3,350 41.5%
Net provision in policy reserve 71,533 125,382 83,565 152,465 82.5% 52,706 36,942 62,817 70.0%
General and administrative expense 12,952 12,194 9,018 8,211 -9.0% 2,565 2,794 2,852 2.1%
Total operating expense 185,236 242,236 167,100 231,292 38.4% 76,004 61,634 93,654 52.0%
Net non-operating income (27) 139 119 148 23.9% 22 67 59 -11.9%
Income before tax 13,977 2,062 7,427 8,310 11.9% 1,063 2,338 4,909 109.9%
Net income 12,128 1,612 6,004 7,691 28.1% 499 2,466 4,726 91.7%
Balance sheet data
Fixed income assets 680,607 837,156 754,457 965,945 28.0% 876,372 889,955 965,945 8.5%
Investment assets 762,608 894,578 822,872 1,065,742 29.5% 946,131 979,584 1,065,742 8.8%
U-linked assets 130,071 113,874 132,293 151,837 14.8% 112,829 132,611 151,837 14.5%
Total assets(1) 797,628 936,444 863,601 1,260,670 46.0% 985,439 1,023,793 1,260,670 23.1%
Policy reserve(1) 701,533 825,319 784,162 1,140 -99.9% 877,982 914,656 1,140 -99.9%
Total reserve(1) 713,520 838,315 796,898 985,443 23.7% 891,454 928,534 985,443 6.1%
Total liabilities(1) 739,124 870,071 821,363 1,168,797 42.3% 927,089 957,257 1,168,797 22.1%
Shareholders' equity 58,503 66,373 42,238 91,873 117.5% 58,350 66,536 91,873 38.1%
Note(1) :excl. investment-linked
Summary ratios
Claims and benefits ratio 57.4% 44.5% 45.9% 29.1% 25.0% 35.4% 28.5%
Expense ratio 8.4% 5.8% 6.4% 3.9% 3.7% 5.2% 3.3%
Persistency ratio - 13th month N.A 88.2% 86.6% 89.0% 89.2% 89.7% 89.0%
Return on average assets 1.6% 0.2% 1.4% 0.9% 0.21% 0.98% 1.66%
Return on average equity 18.2% 2.6% 28.4% 13.0% 3.2% 15.8% 23.9%
Interest yield on fixed income investment 2.81% 3.18% 3.5% 3.51%
Total investment return 4.28% 3.16% 4.1% 3.98%
Note: (1) Exclude investment-linked
(2) Assets under separate accounts are not included in ROA calculation.
(3) Net profit combined started from 1 Jan ,2009; Year 2008 and 1H08 based on pro-forma
NT$ millions, except for percentagesFull Year Comparison of 9M Results 2009
Attachment8
Outstanding Shares
(million shares)
Issued shares : 8,125
Treasury shares : -
Outstanding shares 8,125
As of Sep 30, 2009
Attachment 9
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